Delusions of Paul Krugman

January 1st, 2009 9:44 pm  |  by Mike Miller  |  Published in Banking, Big Government, Debt, Economics, Federal Reserve, Free Market, Investing, Liberty, Money, Politics, Taxes, gold standard, government spending, inflation, ludwig von mises, national debt  |  Comments

At the Ludwig von Mises Institute, William L. Anderson has written a fantastic article describing the causes of our bubble economy mostly by doing a number on Paul Krugman, recent Nobel Prize winner who doesn’t seem to have a clue about reality.  It’s a great read:

As a long-time critic of the part-time economist and full-time political partisan Paul Krugman, I would be remiss if I did not give him at least some credit for being able to point out the obvious: Bernard Madoff’s Ponzi scheme really is a prototype for the modern US economy. Yes, Krugman is right, but, alas, I am also required to add that a broken clock is still more consistent at telling time than Krugman is at explaining economic phenomena.

Indeed, the US economy has gone through two destructive financial bubbles in the past decade, although the government’s response to the last bubble has been to spread the damage throughout the economy to where the damage can no longer be relatively contained. The Madoff revelations are simply another blow to the reeling financial industry that not long ago was “creating” multimillionaires who had not yet made it to their fifth reunions at Harvard or Duke.

Continue the article here.